Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Shareholder Meeting (November 2011)
15 slides from Bluescope Steel's shareholder meeting presentation, Nov 17, 2011
Slide 1: Annual General Meeting
For personal use only Annual General Meeting Graham Kraehe Chairman 17 November 2011
Slide 2: Financial Year 2011
Financial Year 2011 For personal use only • Massive and rapid structural change impacting global steel industry • BlueScope Net Loss After Tax – Underlying $ 118 million – Reported slightly over $1 billion • Included one-off impairment of $922 million – Write-downs related to Australian businesses P
Slide 3: Port Kembla raw materials bill: iron ore and hard coking coal prices
Port Kembla raw materials bill: spiked in FY2009; retraced to near prior For personal use only averages in FY2010; spiked again in FY2011 and FY2012 Iron Ore and Hard Coking Coal Prices Iron ore fines price US$/t Hard coking price US$/t 180 160 320 140 Hard coking coal 120 240 100 80 160 60 40 80 Ir
Slide 4: Commodity prices surge in 2008, 2010 and 2011
Commodity prices surge in 2008, 2010 and 2011 For personal use only RBA Index of Commodity Prices SDR 2008/09 average = 100 160 140 120 100 80 60 40 20 0 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: Reserve Bank of Australia Page 4
Slide 5: Australian Dollar VS US Dollar
Australian Dollar VS US Dollar For personal use only Average Monthly Foreign Exchange Rate USD/AUD July 1990 – October 2011 1.10 1.01 (Oct’11) 1.00 0.90 Avg: $0.88 Start: $0.79 End: $1.01 0.80 High: $1.08 Low: $0.65 Avg: $0.69 0.70 Start: $0.79 End: $0.79 High: $0.82 0.60 Low: $0.50 0.50 0.40Jan-90
Slide 6: Two other major issues
Two other major issues For personal use only 1. Potential for a carbon tax on Australian Steel Industry 2. Compounding effect of a small Australian market reliant on exports and therefore subject to currency issues Page 6
Slide 7: Share Price
For personal use only Share Price Page 7
Slide 8: Restructuring for profitability and growth
For personal use only Restructuring for profitability and growth Page 8
Slide 9: Carbon Tax
For personal use only Carbon Tax Page 9
Slide 10: Strategy and Outlook
Strategy and Outlook For personal use only Page 10
Slide 11: Strategy
Strategy For personal use only • Restructuring Australian business creating a foundation for future growth • Future growth strategies: 1. Optimising service to the key Australian market with one blast furnace 2. Building on outstanding presence in downstream Asian markets 3. Globalising PEB business
Slide 12: Outlook for first half of FY2012
Outlook for first half of FY2012 For personal use only • Confirming August guidance ¾A significant reported Net Loss After Tax including restructuring costs (excluding year-end NRVs and/or impairments) ¾A small underlying Net Loss After Tax (excluding restructure costs, year-end NRVs and/or impairme
Slide 13: Board Renewal
For personal use only Board Renewal Page 13
Slide 14: Conclusion
For personal use only Conclusion Page 14
Slide 15: Thank you
For personal use only Thank you Page 15
BlueScope Steel — Shareholder Meeting (November 2011) on 6ix